Mortgage rescue scheme might help just 14 homes in Runnymede

Nov 28 2008 By Steve Bax

Struggling homeowners should not rely on the Government to rescue them if they can't pay the mortgage, says a senior Runnymede councillor.

Peter Waddell, who is deputy leader of the Tory-run council, warned this week that a Government scheme to rescue 6,000 households across the country would provide assistance to 'less than 14 homes' in Runnymede.

He said: “I would caution homeowners not to rely on being rescued and suggest that if they have particular difficulties to start speaking to their lender and seeking advice at the earliest possible stage. 

"We are still waiting for the Government to clarify the workings of their scheme but the funding is only enough to help 14 families in each local authority if it is shared equally across all authorities, and there is no guarantee of this.

"I am very concerned that the Government are raising householders’ expectations and then leaving Local Authorities to dash them.”

The Government has pledged £200m nationally towards the mortgage rescue scheme and expects to help about 6,000 households, families and vulnerable adults. If applicants are deemed eligible then a housing association (Registered Social Landlord) will be asked to provide an equity loan for the property or to purchase the property and then rent it back to the occupants.

However before any homeowner can become eligible for the scheme they must exhaust a number of other steps including:

- Talking to their lender about different payment options;

- Obtain independent money advice;

- Considering downsizing to a smaller property;

- Ensuring they are claiming all appropriate benefits including mortgage interest payments if eligible.

Councillors voiced their concerns about the scheme at Runnymede’s Housing and Community Services Committee meeting on November 20.

Many aspects of the scheme are still to be developed and it is not known yet which Registered Social Landlord will provide the scheme within the Surrey area.

However in the meantime households who are concerned about their mortgage position can obtain a leaflet from the National Homeless Advice Service entitled “Are you worried about your mortgage?” The leaflet can be downloaded from www.nhas.org.uk

Other places to seek advice include:

Citizens Advice Bureau - tel: 01932 827187

Community Legal Advice - 0845 3454 345,

Consumer Credit Counselling Service - offering assistance in resolving multiple debts, on 0800 138 1111

Council of Mortgage Lenders - It does not provide advice but has useful information on mortgages.

Financial Services Ombudsman - Aims to settle unresolved disputes between customers and mortgage providers. Tel 0845 080 1800